The Best High Yield Online Savings Accounts (of 2018)

I spend a lot of time talking about the need to have your money in a high-interest or high yield online savings account.

I thought it was about time I put together a list of the top high yield online savings accounts. (Don't forget to check out our auto-savings apps too.) Okay, here are the best savings accounts:

This is by no means a complete list of the accounts out there. It's just the one's I've had some experience with.

I will link to this post from the home page and periodically update this listing with new accounts that I find and all the rate changes that take place.

The rates are constantly changing, so don't focus on that too much.

One thing to note though is that any of these accounts would be great compared to the savings accounts held at traditional brick and mortar type institutions. Don't forget that all of these high-yield online savings accounts are FDIC insured, unlike peer lending or the stock market.

There are many of these accounts now available across the web. All contain different features, both positive and negative. But most, if not all, are FDIC insured, contain no fees, and pay an interest rate significantly better than traditional savings accounts.

You should definitely find one that’s right for you and get started saving. And don’t just consider this list. These are just some of my favorites.

Featured Savings Account

CIT Bank – CIT Bank's Premier High Yield Savings Account requires just a $100 minimum opening deposit, has (refreshingly) no fees to open or maintain your account, 24/7 secure online banking access, a US-based customer service experience that people love, and of course, is FDIC insured. CIT Bank also offers CDs, business banking, and home loans. With such a low minimum to get started, this is a great account to get started with. Read our full review of CIT Bank's High Interest Savings Account.

FNBO Direct – FNBO Direct is a product of the very old and stable First National Bank of Omaha. That’s where Warren Buffet lives. That’s got to be a good sign right? Anyway, they offer a nice, FDIC-insured savings account with a leading interest rate. There is no minimum to open a savings account. They also have a bill pay (checking) account, certificates of deposit (CDs), ATM card, credit card, and now a debit card. Their website is very user-friendly, but maybe not as easy to maneuver as others. They are FDIC Insured and void of any bad fees. Read our review of FNBO Direct.

EverBank – EverBank offers a great 1.21% introductory interest rate, as well as a Yield Pledge that promises your yield will stay in the Top 5% of Competitive Accounts. Their initial deposit minimum of $1,500 is very doable, and there are no surprise fees for either their online or mobile accounts. This account is FDIC insured and gives you the ability to make six withdrawals each month. One of the best features of this account is the Online Check Deposit feature available through their mobile banking app. Read our review of EverBank.

Ally Bank – Ally Bank is one of the newest faces in the online banking world. Although, they are really just a re-brand. They used to be GMAC bank. Either way, they offer some pretty nice services aimed at treating their customers responsibly (you've seen the commercials). They have both a savings and an interest checking account. They also offer some of the best CDs available today. Not just because of rates, but because of their flexibility. They have a no penalty CD and a one-time rate adjustment CD. They are FDIC insured and charge no ridiculous fees. Read our review of Ally Bank.

Learn more or get started with Ally by visiting www.ally.com.

360 Savings® by Capital One® – 360 Savings by Capital One is, in my opinion, the reigning leader in online savings because of their great website, excellent customer service, and multitude of other financial products. They offer a great savings account, a bonus to get started, 360 checking account, as well as debit cards to access your money. Like others, there is no minimum to open an account and they extend their services into CDs. They also have mortgages, life insurance, and also, low-cost investing through their Capital One Investing product. They are FDIC insured and have no crazy fees.

I've been banking with 360 Savings by Capital One for several years now and I've been completely happy with the savings account. So much so that I made them my primary bank, opening up a checking account there, and also doing some investing using Capital One Investing. Read our review of Capital One 360.

PurePoint Financial – If you want a simple, no fees, no frills, high-interest, online savings account, have at least $10,000 to get started, and can appreciate a convenient local financial center (i.e. branch) in Dallas, Houston, Chicago, Miami, or New York (coming soon), look no further than PurePoint Financial. They are a new brand from MUFG (one of the oldest and largest international banks) that offers two simple things: CDs and online savings accounts. Their savings rates are really impressive and the hybrid local factor makes them an impressive option. If you want checking or other financial products look elsewhere. PurePoint Financial's savings account is FDIC Insured and requires $10,000 to get started. Read our review of PurePoint Financial.

Learn more or get started with PurePoint Financial by visiting www.purepoint.com.

Discover Bank – Most people don't realize that Discover also has an online bank. They started offering the online Savings account in the Summer of 2009, and they have a really good offering. The offer one of the better rates. They have an initial deposit requirement of $500. They have no excessive fees of any kind and they are FDIC Insured. In addition to the savings account, they have a really attractive set of CDs, and their one-of-a-kind IRA CDs. Read our review of Discover Bank.

Learn more or get started with Discover Bank by visiting www.discoverbank.com.

BBVA Compass – The BBVA Compass Money Market Account yields a vry high interest rate, and you can open an account with as little as $25. There is a monthly service fee of $15 which could eat up your interest–but if you have $10,000 or more in your account or have an automatic recurring transfer of $25 or more, your fee will be waived. There is a limit to a number of transactions you can perform online. Your interest rate may be affected if you make too many online transactions per month. However, there are no withdrawal limits for transactions made in person at a banking office or ATM, although withdrawals and transfers may be subject to Excess Transaction Fees.

Why We Need High-Yield Online Savings Accounts

I love the online savings account. It has so many uses. Mainly it will simply help you start saving more of your money. When I first started getting passionate about my finances and making changes with managing my money, one of the first things I did was open up an online savings account. Here's why I did and some of the benefits of having one. Hopefully, this list will convince you to open one.

Put Your Savings Behind a Wall – Since these high-yield online savings accounts are usually online-only, getting to your funds isn't as easy as say a regular savings account. With regular savings accounts, you can walk into the bank, or move the money in a second to a checking account using an online feature.

Online banks typically don't have physical locations. To get your savings in and out of these accounts, you'll typically need to transfer your money to another bank and then make a withdrawal and or use the ATM.

I've found that this barrier often dissuades me from spending money that I shouldn't, or keeps me from raiding the emergency fund for something frivolous. So you see, this faux-wall to your savings actually helps you to save more in the long run.

No Fees or Minimums to Worry About – Let's face it. The big guys on the banking block have run the show for far too long. A big bank checking and savings account can cost you hundreds in fees every year.

There's no reason you should put up with ridiculous fees and minimums from banks, just so you can lend them your money. They should be paying you. But they can't because they are fat and bloated and need your money and fees to cover their fat cat expenses.

Don't play that game any longer. Move to an online bank where you can enjoy a fee-free environment.

High Interest / High Yield – If you do like I did for so long and keep your savings in a regular savings account, you will earn a very small amount of interest on your savings. Typically this is something like 0.10%. That stinks.

That won't even allow you to keep up with inflation. Boo.

With a high-interest online savings account, you can earn much more. Look at the rate chart above to see the current annual percentage yield on these accounts.

These rates also fluctuate with the LIBOR rate. So when interest rates start to rise again, you'll see these rates shoot back up. I remember when the rates were something like 5.00%. Wow!

Can You Still Call Them High-Yield Savings Accounts?

I had a reader leave a comment over the weekend asking whether or not these savings accounts could still be classified as “high-yield” since the rates were so low. It's a fair question and one that I thought I would tackle here on the blog.

Interest rates are currently ranging from 0.75% to 1.15% on these accounts. Historically speaking, that is a low-interest rate. I remember when these high-yield savings accounts were at their highest (2007-2008). They were touting rates in the 4% to 5% range. It certainly appears that rates are no longer high.

But you can't stop your comparison there. What makes these accounts so special is that they don't have the internal expenses that most brick and mortar banks have. As a result, they are consistently able to offer a better rate on savings accounts than banks like Chase and Bank of America.

And they do. Right now most are offering at least 3 times what Chase and Bank of America offer. So if you compare the savings rates at the online banks against the brick and mortar banks, the term “high-yield” still holds up.

The only reason they are as low as they are is that the Federal Funds Rate and the LIBOR Rate (two factors that drive bank interest rates) are at historical lows. They were forced lower to supposedly keep inflation rates at normal levels.

All that to say, across the industry, banking rates are low. So the question then becomes, where do you turn to get a better rate without sacrificing the security of FDIC insured banking product? You can't turn to the stock market or peer lending. Both are too risky. Some have turned to reward checking (some offering around 4%), which is probably a good move for those who can work within the requirements of such an account.

My money is staying put in my high-yield savings account. I'm there first and foremost for the FDIC insurance I get. I also like that these accounts provide clear separation from my checking account, and they provide the liquidity to actually use the money if it's needed. If my account gets too full, then I'll take the excess and put it in equities.

Rates will return. These banks didn't put out teaser rates, just to collectively drop them to the floor. They are low for a reason. Once the major banking rates mentioned above return to normal levels, the high-yield rates will be back. I'm fine sticking around till they do.

Learn more and get started with our featured partner, FNBO Direct, by visiting www.FNBODirect.com.

Join 38,500 subscribers improving their financial life.

Subscribe for free. Get my book (31 Days to Improve Your Financial Life), intro series, and article digest.

Last Edited: February 8, 2018 @ 9:33 amThe content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.

About Philip Taylor

Philip Taylor, aka "PT", is a CPA, financial writer, podcaster, FinCon Founder, husband, and father of three. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or Google+. Listen to the new podcast, Masters of Money!

Up Next...

Comments

I’m just still blown away….how on earth is 0.9 considered high yield? I was reading Dave Ramsey and all excited about saving a bunch of money and then come to find Highest interest rates less than even 1%. Disgusted.

Wow, is this some kind of a joke?!? What happened to interest rates of 12%? Does that not exist anymore? Investing with an interest rate of 0.9% is not much better than sticking money in a piggy bank. Very discouraging.

Thanks – one other thing that I would be interested to know but most people don’t talk about is what their ACH transfer limits are. I’m not just referring to the number of withdrawals (I’m aware that it’s six per month), but the actual amount they allow you to transfer per month/transaction. I read that some banks have a fairly low transfer limit, which could be a problem if I ever need to transfer a substantial amount of money back to my linked checking account within a short period of time. For example I’ve been saving money for a house in one of these accounts, and I would hate it if I come across a house I like and they don’t let me transfer the required amount for the down payment.

Have any opinion on the features/functionality of the banks that have the higher rates? meaning, things like transfer times, fund hold times, quality of web or mobile interface, or customer service? I am having a hard time choosing between Amex, Barclays, CIT, and Ally because all their rates are relatively similar but I get conflicting reviews online with regard to the other aspects. Speed of bank transfers (in and out) and quality of web site (meaning able to complete most activities yourself) are my top requirements.

I have ING Direct and SallieMae accounts (don’t forget about SallieMae!). SallieMae has offered rates equal to or better than ING Direct for a while, but now they’re basically the same. However, I closed my ING Direct account once Capital One took over — Capital One is a relentless marketer that fills up my mailbox with unending offers, and I don’t want to deal with that or them. I would keep an eye on ING Direct with Capital One in charge!!

Given what must be huge profit margin for banks between these savings rates and their lending rates, can anyone tell me why there is not more competition between these savings rates ? Ie why not more competitive upward pressure in these rates ?

Given what must be huge profit margin for banks between these savings rates and their lending rates, can anyone tell me why there is not more competition between these savings rates ? Ie why not more competitive upward pressure in these rates ?

Excellent point, Jared. Compared to 2004 levels, these rates aren’t high. But when you compare them to BOA and Chase checking, they are at least 3 times higher, which is still significant in my book. If you also consider that these banks are virtually fee free compared to those brick and mortar types, the differences really show up. Still, you make a good point about interest rates. It’s hard to get anything for your money these days. I know many people have turned to reward checking, and riskier products like peer lending, and even the stock market to find better returns for their savings.

I have checking accounts at 2 small banks that each pay just over 3%. Both the EZ Rewards Checking at Crow River Bank in Delano, MN and the Power Checking at BankWest in Rockford, MN are completely free checking accounts. There is no minimum balance and the 3+% rate is paid on any balance less than $25,000. The only requirements are: to access online banking and receive electronic statements, have one automatic (electronic) deposit or one ACH automatic debit (ie, automatic payment of a utility bill) and make 10 purchases with the free debit card you receive. There is no minimum purchase, so you can charge little things like lunch at McDonald’s or any small purchase. The requirements must be met each statement cycle to receive the higher interest rate. If you don’t meet the requirements, you receive a lower rate for that cycle. ATM fees are reimbursed as long as you meet the above requirements for each statement cycle. There is unlimited check writing too. It’s a great deal.

I have used Emigrant Direct for years and their current rate is 1.65%. Their site is very easy to use and you can have multiple accounts with one log-in to help separate your different savings categories.

@Sarah – You got me really excited! However, I just called Schwab and that would be 0.2% (not 2.0%) – how big a difference it makes where the decimal is… 🙂 I recently opened a FDIC Money Market savings account at Sallie Mae’s banking division. The rate started at 1.05%, but has since dropped to 0.95% (still not bad). There are no minimum balance requirements. And you can open as many savings accounts as you like, so we use them for all of our different savings goals. @ptmoney thanks for the CITBank tip – I like anything over 1% these days!!

Should this list also include High-yield Money Market accounts? Over recent months, the Capital One MM account (with no minimums) has had a higher rate than the Capital One Savings account. Once you get over $10k, it makes sense to move that to a Capital One Savings acct (minimum to achiever higher rate).

Social

Disclosures:

The content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice.